Day 4 Value Ladder of Affiliate Bootcamp Training!

By the way if you missed our previous clickfunnels affiliate bootcamp training then you can go back and check out our previous days training.

Let’s start our Day 4 affiliate bootcamp training.

I am super excited today because this is the day that blows your mind!

If you’re building your affiliate business right, then you’re creating a community of like-minded people who appreciate the help that you provide.

But you still need to pay for the ads and marketing that it takes to build that community…

In today’s training Russell shows you exactly what it takes to never have to worry about the words “marketing budget” ever again…

How to create a business where you can dial your sales up, or down, as you wish.

And it all boils down to one thing…

Are you ready? Let’s get going!

In today’s training we are going to learn about the concept of Value Ladder which I learned from Russell Brunson.

Actually, this is the most important concept while building the foundation of business.

And once you understand this concept correctly then you can take your business making little bit money to making a lot of money. So pay close attention to it. Right!

But before discussing about Value Ladder, let I explain on how to beat out your Competitor?

Person who spends most amount of money to acquire a customer is gonna always win!

“Ultimately, the business that can spend the most to acquire a customer wins.” Dan Kennedy

Just think about biggest competitor in your market. You will find them all over the place such as on TV, Billboards, Newspaper, Radio or Social Media etc.

Just see an example of McDonald. Obviously Mcdonald is a big company. They know how to advertise. They spend insane amount of money to acquire a customer.

They know how to acquire a customer. That’s why they are all over the place.

See below how their typical sales funnel look like.

To drive a customer to their window it costs to them on average $1.91 ads and when you go there and place your first order and you buy a Humburger then it costs to you $2.09.

Here you might be surprised!

Man! They are only making $0.18 cents profit by driving a customer to their window. Not that good! Right!

But here McDonald is a smart Company. When you go there and as soon as you place your order for Humburger, then they also offer you Fries & Coke and it cost to you $1.77. I think, you might have noticed this lot of time.

Now you can see their upsell in the shape of Fries & Coke. Right! And the point where you purchased Humburger at cost of $2.09 is there breakeven point.

And further at the point where you purchased Fries & Coke at a cost of $1.77, gave them the profit of $1.32 which is a pure profit to them. Now you can see the 8X the profit from their upsell. Without their upsell, they are nothing. Right!

Note: – Breakeven is a point where you cover your spending amount to acquire a customer.

For example you spend on ad $2 to acquire a lead and that lead purchases your frontend product which cost is also $2 then here you get the breakeven point.

So in this example, you got back your $2 ad spends when your lead purchased your frontend product at a cost of $2. This is your breakeven point. Right!

So in your sales funnel, your first goal should be at least to reach at the breakeven point. That should be your No.1 focus. Right!

And after breakeven point, if customer buys anything from your upsell products which can be in the shape of any continuity program, High Ticket or any other offers will be pure profit.

Further, just to understand it better please see above the first Graph of Value Ladder.

On the left hand side axis there is Value, and on the bottom axis there is Price. Further, on the top right hand corner of this graph, you’ll see the big $ sign. This is where you want to take your client.

This where you can provide them the most value and also charge them the most.

Just brainstorm your mind that where do you want to take your customer?

What is the best value that you want to give to your customer?

What is the best possible way you want to serve you customer? Right!

Further to understand it better let’s take an example of Russell’s Free Book of 108 Proven Split Test.

What happens in that case, in sales funnel, Russell give away his Free Book called 108 Proven Split Test only just by paying shipping and handling charges at the frontend.

And when customer finishes reading that book and found value from this book, then he thinks what else Russell has in his bucket. This is the point where you take your customer to the next level.

Or you can say you take your customer from first thing to next thing and to another next thing step by step by providing value.

This is how Value Ladder works!

You can take another example of Value Ladder for A Dentist. Please see below the screenshot.

In this example, you can clearly see that Dentist first created his bait i.e. Free Teeth Cleaning which would attract his dream client.

Second he provided value by offering free Teeth Whitening.

Third he found another way that he could provide value i.e. Retainer. Right!

Fourth Cosmetic Surgery. At this point, for many dentists they make the most money and provide the most value for their patients by offering Cosmetic Surgery.

Further he added six month’s regular checkup which is actually a continuity program.

Here, dentist has a perfect Value Ladder.

Hey! You might be thinking what is continuity program?

Don’t worry! I explain it in a very simple way.

Continuity program is where you continue paying on a weekly, monthly or yearly basis until you decide to cancel. Got it!

Further, you can see an example of Clickfunnels where you pay $97 for starter plan on a monthly basis. Actually this is the perfect example of continuity program.

So Value Ladder is the first thing you have to build out before creating sales funnel. Or you can say Value Ladder is the key to building your marketing funnels.

You need to be able to build out a full Value Ladder.

Most businesses have one or two pieces of the ladder, but they rarely have all four.

Actually, there’s no end to the level of backend services and experiences you can add. If you keep providing more and more value, people will spend more and more money to keep working with you.

A percentage of your audience will always want to pay you the premium to get more value.

The only limit to your value offerings is your imagination. Keep thinking of higher and higher levels of service, and you can keep charging more and more money.

There’s always something else you can offer.

At last if you want to succeed and beat out your competition, you need to have this Value Ladder in place. Right!

And yes one thing very important to note that people don’t buy what they need, they buy what they want.

So keep this in mind while creating your frontend and backend offer.

In frontend keep something that people want and in the backend keep something that people need. Right!

Now you know the concept of Value Ladder. So here is your home work of Day 4 training.

Just write down the answer of below said questions honestly. Ok!

How Can You BEST Serve Your Dream Client?

Example: Your High Ticket Product

How Can You Provide Monthly Value To Your Client?

Example: Your Continuity

What Does The Rest Of Your Value Ladder Look Like?

So that’s the end of today’s training. If you have any doubt or question then do let me know in the comment below. And yes! If you like this training then don’t forget it to share with your friends.

Ok! Bye for now! Tomorrow I will show you the “secret weapon” when it comes to understanding traffic, and how to take action on everything you learned today. See you there!

About The Author

My name is Pankaj Singh from India. I have two kids and a beautiful wife.
I am a full time Affiliate Marketer, Networker and Blogger. To me its been more than 5 years into Affiliate Marketing field.
I love Affiliate Marketing. I am on a mission to share whatever I know specially about Affiliate Marketing. My favorite quote "Typical people always get typical results".
So don't be typical in life. What I learned during my journey that always be willing to fail, invest in you and your business.
Last but not the least never ever, ever Give Up!

Welcome To My Blog!

My name is Pankaj Singh from India. I have two kids and a beautiful wife.
I am a full time Affiliate Marketer, Networker and Blogger. To me its been more than 5 years into Affiliate Marketing field.
I love Affiliate Marketing. I am on a mission to share whatever I know specially about Affiliate Marketing. My favorite quote "Typical people always get typical results".
So don't be typical in life. What I learned during my journey that always be willing to fail, invest in you and your business.
Last but not the least never ever, ever Give Up!